U.S. commercial crude oil reserves rose by 2.4 million barrels last week, according to figures released Wednesday by the U.S. Energy Information Agency (EIA). This increase is close to the estimates, which predicted an increase of 2 million barrels.
Gasoline inventory up
On the other hand, gasoline inventories rose more than expected, reaching 5 million barrels, while analysts were expecting an increase of only 1.6 million. The consensus was established by the Bloomberg agency.
As of the week ended February 3, commercial crude oil inventories stood at 455.1 million barrels, 4% above the average for the same period over the past five years. This is the seventh consecutive week of increases in commercial stocks.
Strategic reserves unchanged
The U.S. government has not changed the strategic reserves (SPR), which have remained intact since mid-January. Indeed, the government had stopped drawing on strategic reserves to boost crude oil supply and drive down gasoline prices. Strategic reserves are currently the lowest since December 1983, standing at 371.6 million barrels.
Rising inventories put the brakes on rising crude oil prices
This increase is attributed to a decline in exports and robust imports. Exports fell by nearly 600,000 barrels per day to 2.9 million barrels per day, while imports rose to 7.05 million barrels per day, down 225,000 barrels per day.
On top of that, U.S. crude oil production also rose by 100,000 barrels per day to a record 12.3 million barrels per day, the highest since the Covid-19 pandemic began in April 2020. Refinery capacity utilization also increased from 85.7% to 87.9%, contributing to higher gasoline stocks. However, this utilization rate is still below the seasonal norm, according to Smith.
Weekly inventories of distillate products, such as heating oil and diesel, rose by 2.9 million barrels, exceeding analysts’ forecasts of a one million barrel increase. Overall, U.S. petroleum product consumption increased by 430,000 barrels per day to 20.5 million barrels per day.
